8 unchanged sentences
We are exposed to market risks related to fluctuations in interest rates on our outstanding variable rate indebtedness.
−Removed: We did not utilize swaps, forward or option contracts on interest rates or commodities, or other types of derivative financial instruments as of or during the year ended December 31, 2019 .
+Added: In November 2020, we entered into a three-year interest rate cap of LIBOR of 0.70% to hedge a portion of our Credit Agreement risk exposure and future variable cash flows associated with LIBOR interest rates.
We have not entered into and currently do not hold derivatives for trading or speculative purposes, but we may do so in the future.
4 unchanged sentences
The interest rate for our variable rate indebtedness as of December 31, 2020 was LIBOR plus 2.35%.
−Removed: At December 31, 2019 , LIBOR was 1.75% .
−Removed: A hypothetical 100 basis point increase in the average interest rate on our variable rate indebtedness would increase our annual interest cost by approximately $4.0 million .
+Added: At December 31, 2020, LIBOR was 0.15%, subject to the 0.70% LIBOR floor as included in the Credit Agreement.
+Added: A hypothetical 100 basis point increase in the average
+Added: interest rate above the LIBOR floor on our variable rate indebtedness would increase our annual interest cost by approximately $2.5 million.
Based on the current interest rate management policies we have in place with respect to our outstanding indebtedness, we do not believe that the future interest rate risks related to our existing indebtedness will have a material adverse impact on our financial position, results of operations, or liquidity.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.